2. Cooperative Federalism Dual Federalism

4. Shared administration
Dual Federalism - National government and states operate in own “spheres”
Cooperative Federalism – share and overlapping powers and responsibilities
Shared costs
Federal guidelines
Shared administration

5. Examples:
Education

6. Examples:
Education
Highways

7. Democrats v. Republicans
Democrats (generally) favor increasing federal power
Republicans (generally) favor state control
Devolution – returning control to the states

8. Fiscal Federalism

9. Taxes
Strings and Conditons

10. Fiscal Federalism
21% of funds spent by states
16% of the federal budget
Types of grants-in-aid
Categorical grants – must be used for specified purposes
Conditions attached
Crossover sanctions – influencing policy of unrelated program

11. Fiscal Federalism
Types of grants-in-aid
Categorical grants – must be used for specified purposes
Conditions attached
Crosscutting requirement – condition extends to all activities supported by federal funds

12. Fiscal Federalism
Types of grants-in-aid
Categorical grants – must be used for specified purposes
Conditions attached
Types
Project

14. Fiscal Federalism
Types of grants-in-aid
Categorical grants – must be used for specified purposes
Conditions attached
Types
Project
Formula (Medicaid)

15. Fiscal Federalism
Types of grants-in-aid
Block Grants – broad discretion by states in spending
Mandate – requirement to abide by federal rule or lose funds
Medicaid
Unfunded and underfunded mandates